Very limited sales of ADSL, VDSL chips for now. Ikanos was the first with VDSL2 DMT, today's standard. They've incorporated Globespan-Conexant, once the largest ADSL chip provider. But until their vectored & G.fast chips ship, sales are dismal. With investments from Alcatel and Tallgrass, they have time to turn things around - when the chips get out the door. Tallgrass and management bought an additional $12M in equity early in February.

They are particularly enthused about G.fast. On their investor call http://bit.ly/1BcvVC1, "One is that G.fast is obviously the flagship of the 1-gig push forward, if you will. We expect that market to be -- as the percentage of the total to be around 25% of the mix of the balance of the DSL technology, but one of the things that interesting around G.fast is an end-to-end replacements or deployment takes place.

"So unlike vectoring or the DSL, the vectoring being the most recent technology deployment, the gateway or the CPE does not necessarily have to change from cases and had to be upgraded software, hardware. In G.fast, end to end has to be performed. So I think that represents an opportunity in terms of the total potential dollar that obviously we’re going after."

Quinn Bolton of Needham asked, "I know you’ve got a strategic development with market leader Alcatel-Lucent, can you comment whether you’re deploying both end to that solution both the fiber node and gateway solutions, or is that a level of detail you can’t discuss?' CEO Omid Tahernia replied "I can tell you 100%. No question, we are developing both ends." In Amsterdam, Ikanos told me their G.fast chips will be much faster when they ship.

Tahernia deserves credit for talking straight on the financial call rather than "putting the best foot forward."

Here's the pr

Ikanos Communications Announces Results for the Fourth Quarter and Fiscal Year 2014

[To view a PDF of this press release including financial tables, click here]

FREMONT, Calif., Jan 22, 2015 — Ikanos Communications, Inc. (NASDAQ: IKAN), a leading provider of advanced broadband semiconductor and software products for the connected home, today announced its financial results for the fourth quarter and fiscal year of 2014, ended December 28, 2014.

“We achieved fourth quarter revenue of $11.5 million, within our guidance, with a GAAP gross profit of 49%, which was above our guidance,” said Dennis Bencala, CFO of Ikanos. “During the fourth quarter, we continued to manage our business and cash position, with operating expenses of $15.7 million, and we completed a private equity placement of $16.3 million, which contributed to our cash and short-term investments totaling $15.7 million at year-end.”

“I’m pleased with our financial performance in the fourth quarter, with the revenue at the high end of our guidance and gross profits beating our guidance,” said Omid Tahernia, president and CEO of Ikanos. “We continue to see positive design win momentum and market interest across the board, particularly for our inSIGHT software suite and the Vx500 gateway processor family. With an increasing number of design wins and inSIGHT field trials, our expanding ultra-broadband partnerships, and the significant potential associated with our gigabit strategy, I am encouraged by our momentum going into 2015 and beyond.”

Financial DetailsIkanos reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP) and additionally on a non-GAAP basis. These financial results are unaudited and may require certain adjustments that will be reflected in Ikanos’ Annual Report on Form 10-K for the year ended December 28, 2014. These adjustments may include (a) retroactive application of a previously announced reverse stock split, if effected, which will impact all share and share-related amounts including the weighted average shares and related earnings-per- share calculations within the condensed consolidated statements of operations and the earnings-per-share guidance provided below; and (b) a reclassification between prepaid expenses and stockholders’ equity within the condensed consolidated balance sheet as of December 28, 2014, as a result of the allocation of expenses recognized as issuance costs upon the completion of the rights offering, which is expected to be completed on January 30, 2015.

Non-GAAP net income (loss), non-GAAP gross profits and non-GAAP operating expenses, where applicable, exclude the income statement effects of stock-based compensation and the amortization of intangible assets. Ikanos has provided these measures because its management believes these additional non-GAAP measures are useful to investors for performing financial analysis, as these additional measures highlight Ikanos’ recurring operating results. Ikanos’ management uses these non-GAAP measures internally to evaluate its operating performance and to plan for its future. However, non-GAAP measures are not a substitute for GAAP reporting. For a reconciliation of GAAP versus non-GAAP financial information, please see the attached schedules.

Fourth Quarter 2014 ResultsRevenue for the fourth quarter of 2014 was $11.5 million, compared to revenue of $17.6 million for the fourth quarter of 2013 and revenue of $11.1 million for the third quarter of 2014. GAAP gross profit for the fourth quarter of 2014 was 49%, compared to GAAP gross profit of 50% for the fourth quarter of 2013 and GAAP gross profit of 44% for the third quarter of 2014.

Non-GAAP gross profit for the fourth quarter of 2014 was 50%, compared to non-GAAP gross profit of 51% for the fourth quarter of 2013 and 45% for the third quarter of 2014.

GAAP operating expenses for the fourth quarter of 2014 were $15.7 million, compared to operating expenses of $17.1 million for the fourth quarter of 2013 and operating expenses of $14.8 million for the third quarter of 2014.

Non-GAAP operating expenses for the fourth quarter of 2014 were $14.7 million, compared to non-GAAP operating expenses of $16.2 million for the fourth quarter of 2013 and non-GAAP operating expenses of $13.9 million for the third quarter of 2014.

GAAP net loss for the fourth quarter of 2014 was $(10.4) million, or a loss of $(0.07) per share on 139.2 million weighted average shares outstanding, compared to a GAAP net loss of $(8.6) million, or $(0.10) per share on 85.6 million weighted average shares outstanding, for the fourth quarter of 2013 and a GAAP net loss of $(10.3) million, or $(0.10) per share on 99.3 million weighted shares outstanding, for the third quarter of 2014.

Non-GAAP net loss for the fourth quarter of 2014 was $(9.3) million, or a loss of $(0.07) per share on 139.2 million weighted average shares outstanding, compared to a non-GAAP net loss of $(7.6) million, or $(0.09) per share on 85.6 million weighted average shares outstanding, for the fourth quarter of 2013 and a non-GAAP loss of $(9.3) million, or $(0.09) per share on 99.3 million weighted average shares outstanding, for the third quarter of 2014.

Cash and cash equivalents and short-term investments at year-end were $15.7 million, compared to $6.7 million at the end of the third quarter of 2014. Year-end cash included proceeds from our September 29 private equity placement of $16.3 million. Additionally, at year-end, inventory was $2.0 million, compared to $0.9 million at the end of the third quarter of 2014. Current liabilities at year-end were $22.4 million, compared to $16.7 million at the end of the third quarter of 2014. For both the fourth quarter and third quarter of 2014, current liabilities included an accounts receivable-backed revolving line of credit advance of $10.8 million and $4.9 million, respectively.

For more complete information regarding our fourth quarter and fiscal year 2014 results please see the attached financial schedules.

OutlookRevenue is expected to be between $10.0 million and $12.0 million for the first quarter of 2015.

GAAP gross profit for the first quarter of 2015 is expected to be between 46% and 48%. Non-GAAP gross profit is expected to be between 47% and 49% for the first quarter of 2015. GAAP operating expenses for the first quarter of 2015 are expected to be in the range of $15.5 million to $16.5 million. Non-GAAP operating expenses are expected to be in the range of $14.5 million to $15.5 million for the first quarter of 2015. GAAP net loss for the first quarter of 2015 is expected to be in the range of approximately $(9.9) million to $(12.1) million, or a GAAP loss per share of $(0.07) to $(0.09). Non-GAAP net loss is expected to be in the range of approximately $(8.8) million to $(11.0) million, or a non-GAAP loss per share of $(0.06) to $(0.08).

Ikanos Communications Announces Completion of Rights Offering

Fremont, CA – February 6, 2015 – Ikanos Communications, Inc. (NASDAQ: IKAN), a leading provider of advanced broadband semiconductor and software products for the connected home, today announced that it has completed its previously announced common stock rights offering. The Company raised approximately $12.4 million, before expenses, through stockholder subscriptions for 30,225,948 shares of common stock at a price of $0.41 per share. The gross proceeds and number of shares sold include approximately 160,500 shares that remain subject to notice of guaranteed delivery.

Of the total number of shares sold, an aggregate of 27,848,340 shares will be issued to either a group of investors affiliated with Tallwood Venture Capital, the Company’s largest stockholder, or the Company’s executive officers and directors, all of whom exercised their subscription rights in the rights offering.

The shares of the Company’s common stock sold in the rights offering will be issued to stockholders as promptly as practicable. The rights offering was made pursuant to a Registration Statement on Form S-1 that was filed with the Securities and Exchange Commission (“SEC”) and was declared effective by the SEC on November 26, 2014, and by means of the prospectus that was filed with the SEC on December 1, 2014. Questions regarding the rights offering may be directed to the information agent, D.F. King & Co., Inc., a division of American Stock Transfer & Trust Company, LLC, at (800) 478-5044.